Is Firstrade Legit or Scam?
Firstrade is not a scam. It’s a licensed and regulated discount broker based in the United States. Here are some key points to consider:
- Regulation: Firstrade is regulated by the top-tier Securities and Exchange Commission (SEC) and FINRA, ensuring investor protection and adherence to industry standards.
- Commission-Free Trading: Firstrade offers commission-free stock, ETF, and options trades, making it a cost-effective option for investors.
- Security: Accounts are SIPC protected, meaning that up to $500,000 (including $250,000 for cash claims) is insured in case of brokerage failure.
Company Overview
Feature | Details |
Company Name | |
Founded | 1985 |
Headquarters | Jersey City, New Jersey, USA |
Regulation | SEC, FINRA |
Account Minimum | $0 |
Services or Products
- Stock Trading (US Stocks)
- ETF Trading
- Options Trading
- Mutual Funds (including commission-free options)
- Fractional Shares (coming soon)
If you have lost money to companies like GT-Trader, or Prime Forexlyfe; please report it to us on our Report a Scam form.
Trading Platform & Leverages
- Firstrade offers three trading platforms: Desktop platform, Options Wizard, and Firstrade Navigator mobile app.
- The platforms are known for their user-friendly design and focus on core trading functionalities.
- Firstrade does not currently offer margin accounts and leverage for stock trading.
Spreads and Cost of Trading
- Firstrade shines with commission-free stock, ETF, and options trades.
- No per-contract fees are charged for options trades.
- There are some non-trading fees to consider, such as a $75 full outgoing transfer fee and a $55 partial transfer fee.
- The interest rate on uninvested cash is low (0.45%).
License and Regulations
Legal Warning Against Unlicensed Brokers
It’s crucial to only use licensed brokers to protect yourself from potential scams. Unlicensed brokers operate outside legal regulations and could:
- Disappear with your funds.
- Manipulate prices to your disadvantage.
- Offer misleading information or lack adequate customer support.
Firstrade holds the necessary licenses and adheres to regulations, making it a safe choice for your investments.
Deposit and Withdrawal Methods
- Firstrade accepts deposits via ACH bank transfers and electronic wire transfers.
- Be aware that there may be transfer fees associated with your bank or chosen method.
- Withdrawal methods follow similar options with potential fees depending on the chosen method.
Firstrade Pros and Cons (Table)
Pros | Cons |
Commission-free stock, ETF, and options trades | No 24/7 customer support |
Wide selection of no-transaction-fee mutual funds | Low interest rate on uninvested cash |
User-friendly trading platforms | Limited investment options compared to some brokers (no forex, futures) |
Accepts international investors | No fractional shares available (yet – coming soon) |
Available in Chinese (simplified and traditional) | Â |
Why Dealing With An Unlicensed Broker Is Risky
Unlicensed brokers pose a significant risk to your investment. Here’s why:
- Lack of Investor Protection: Regulatory bodies like the SEC and FINRA safeguard investors by enforcing rules and providing dispute resolution mechanisms. Unlicensed brokers operate outside these safeguards, leaving you vulnerable.
- Potential for Fraud: Unlicensed platforms might be elaborate scams designed to steal your money. There’s no recourse if you fall victim to such a scheme.
- Market Manipulation: Unregulated brokers could manipulate prices to your disadvantage, harming your investment returns.
- Limited Customer Support: Unlicensed brokers often have poor or non-existent customer support, leaving you without assistance if you encounter problems.
Client Feedback
Reviews can offer valuable insights into a broker’s performance. Look for reviews from reputable sources and consider both positive and negative experiences. However, remember that individual experiences can vary.
How Can “Reviewsadvice” Help You If You Get Scammed?
Unfortunately, recovering funds lost to a scam broker can be difficult. However, reporting the incident to regulatory bodies and filing complaints with relevant authorities can help protect others from falling victim to the same scam.
The process of doing the reporting is tough and tiring. Our professionals can help you by providing guidance and proper suggestions to complete the process. Also, they can help you by:
- Recovery Specialists: Connecting you with services to potentially get your funds back.
- Withdrawal Issues: Assistance in filing complaints if you’re facing withdrawal problems.
- Disappearing Brokers: Help find experts to track down the broker and guide your next steps or you Can report to us today by the below form.Â
File A Complaint Against Scammers
Final Thought
Firstrade is a legitimate and well-established discount broker with a strong track record. Its commission-free trading, user-friendly platform, and international accessibility make it a good option for beginner and cost-conscious investors.
Remember, before investing with any broker, conduct your research, ensure they are licensed and regulated, and choose a platform that aligns with your investment goals and needs.
